2017 (3) TMI 1832

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....4A read with Rule 8D(2)(iii) i.e indirect expenditure for earning exempt income. 2. At the outset, the Ld. Counsel for the Assessee submits that all investments income from which is exempt were made in the schemes of HDFC Mutual Fund which are usually made out of business policy and does not require complex analysis by technical experts. The Ld.Counsel submits that this can be seen from the investment schedule furnished in the balance sheet. Therefore, it is submitted that since the Assessee has not incurred expenditure, these investments should not be considered for working out Rule 8(D)(iii) disallowance. The Ld. Counsel further submits that the Assessee has received dividends from 91 transactions all in the form of reinvestment of div....

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....have heard the rival submissions perused the orders of the authorities below and the case law relied on. We find that for the assessment year 2009-10 identical issues arose in Assessee's case and the Co-ordinate Bench decided the issue of disallowance made under 8D(2)(iii) observing as under : "4. On the other hand the ld. A.R. brought to our notice distinguishing feature to the effect that strategic investment was made by the assessee during the year which should not be taken into account while computing disallowance under Rule 8D(2)(iii). It was submitted by the ld. A.R. that all the investments, income from which is exempt, made by the assessee company are in the schemes of HDFC Mutual Fund. These investments made in the various....